The US dollar is giving back gains despite the tariff talk, rate cuts in Australia and New Zealand and despite the hawkish Federal Reserve (Fed) minutes that hinted that the Fed officials are inclined to keep the rates unchanged until they see ‘further progress on inflation before making additional adjustments’.
On the Chinese front, the news are surprisingly well. Not only that Xi Jinping met with the Chinese Big Tech leaders to show off their now-improved relationship, but Trump also said that there could be a trade agreement with China as he’s got a ‘great’ relationship with Xi. And to top it all, Alibaba announced strong quarterly results – its fastest in a year – and said that AI is their ‘primary objective’. Alibaba shares gained more than 12% in Hong Kong today and they are up by more than 75% since mid-January.
